Abu Dhabi (Etihad)
ADC Corporation announced today that it has concluded an agreement with the Holding Company (ADQ) to acquire the United Printing and Publishing Company, a sole proprietorship company (“UPP” or “the Company”), which is headquartered in the Emirate of Abu Dhabi.
After completing the merger between the two companies’ businesses, United Printing and Publishing Company will become a listed company on the Abu Dhabi Stock Exchange.
In exchange for UPP’s contribution to ADC, ADQ Holding Company will issue 62.3 million new Class A shares in ADC at an issue price of AED 10 per share, which implies an equity value for UPP of AED 623 million. After the merger, ADQ Holding Company will remain the largest single shareholder in the combined company.
In conjunction with this merger, ADQ intends to raise financing worth up to AED 734 million through private investments in public equity to support UPP’s organic and inorganic growth opportunities. ADC will issue up to 73.4 million new Class A shares at a price of AED 10 per share, in connection with financing through private investments in public equity.
Upon completion of the deal, United Printing and Publishing will have cash available in the amount of 1.1 billion dirhams through the special purpose acquisition company and funds through private investments, which will allow it to invest in organic and inorganic growth opportunities, accelerate growth in its main areas of work, and increase its market share. Also benefiting from its strong brand, its distinguished group of clients, and its solid work system.
Saif Fikri, CEO of ADC, said: “This deal represents a remarkable achievement for ADC as the first special purpose acquisition company merger in the region, and reaffirms the position of the Abu Dhabi Securities Exchange as the most dynamic financial market in the region. We are confident that United Printing and Publishing Company represents an attractive platform with strong and stable revenues through its long-term contracts and established relationships with prominent clients, such as many UAE government institutions.”
For his part, Ali Al Nuaimi, CEO of UPP, said: “This pivotal achievement in our journey paves the way for continued expansion. Since the company was established in 2006, we have been able to develop to achieve high growth and become a leading entity in the field of security and commercial printing in the UAE, with a portfolio of the most important clients and long-term contracts. Our confidence in the growth potential of our security printing offering remains firm, and will be further supported by additional revenue streams, across sustainable packaging and distribution. With the completion of this transaction, UPP will be able to significantly accelerate the implementation of its organic and inorganic growth strategies.”
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